Stocks fall to start busy week of earnings, inflation data

US stocks extended a streak of volatile trading on Monday Wall Street heads into third-quarter earnings season and attached to a volume of inflation statements.

S&P 500 (^ GSPC) fell 0.6% after a higher start, while the Dow Jones Industrial Average (^ DJIDown 40 points or 0.1%. The tech-heavy Nasdaq Composite (^IXICfell 1%.

CBOE Volatility Index (^VIX), which measures short-term expectations of market volatility, is close to the 33 level. And Treasury yields extended their recent gains. Oil retreated after rising 17% last weekBig jump since Russia invaded Ukraine.

The moves come after an erratic week that began with a sharp rally Ended with a sharp sale It wiped out most of the gains. The recent decline was fueled by a stimulus Strong September jobs report That’s what Federal Reserve officials have assured investors No shift away from tight monetary policy Very soon.

The benchmark S&P 500 index was down 23.6% year-to-date through Friday’s close, but the nine single trading days have combined for a 32-point decline, according to DataTrek Research’s Nicholas Coles.

He added that the bulk of lower days occurred on events related to the Consumer Price Index (CPI) or the Federal Reserve, one triggered by Russia-Ukraine tensions, and two by poor corporate earnings releases. All those factors are expected to test the US stock market in the coming week.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA on October 7, 2022. REUTERS/Brendan McDermid

With JP Morgan’s results, investors are bracing for a flurry of bank earnings that mark the start of a new earnings reporting period (JPM), City (C), Wells Fargo (WFC), and Morgan Stanley (Mrs) will all exit. Other companies, including PepsiCo, are set to report this week.PEP) and Delta Air Lines (DAL)

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Researchers A A painful earnings season Steady inflation, high interest rates and geopolitical headwinds weigh on companies’ bottom lines.

“The bear market will not end until the deteriorating fundamental picture is more fully discounted,” Morgan Stanley chief equity strategist Mike Wilson said in a note.

On Wall Street’s plate September consumer price data, one of the most important statements ahead of the FOMC’s next policy-making meeting in November. While headline reading is again expected to moderate, all eyes will be on the “core” portion of the report, which will clear out the volatile food and energy categories. Economists polled by the Bloomberg Project Center CPI rose to 6.5% from 6.3% for the year, according to the latest estimates.

“Volatility in equity and fixed income markets will continue until there is a clear signal that inflation is under control,” Peter Essell, head of portfolio management at Commonwealth Financial Network, said in a recent note.

Alexandra Semenova is a Yahoo Finance reporter. Follow her on Twitter @alexandraandnyc

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